CFE – Fraud Prevention and Deterrence — Question 71

According to the findings in Occupational Fraud 2022: A Report to the Nations, which of the following is TRUE?

Answer options

• A. Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.
• B. Most fraudsters have previous criminal convictions for fraud-related offenses.
• C. An unwillingness to share duties is the most reported red flag displayed by fraud perpetrators prior to the detection of their crime.
• D. Men commit significantly more frauds than women do.

Correct answer: C

Explanation

The correct answer is C because it highlights a common behavior among fraud perpetrators that often leads to detection. The other options are incorrect as A misrepresents the findings regarding loss amounts, B incorrectly generalizes the criminal history of fraudsters, and D does not accurately reflect the statistical data regarding gender involvement in fraud.